Cross-Liability
A provision in a CGL policy stating that the insurance applies separately to each insured, allowing one insured to make a claim against another insured under the same policy.
Overview
Cross-Liability (also called Severability of Interests) ensures that when multiple parties are insured under the same policy, each is treated as if they have their own separate policy. This is critical when an Additional Insured needs to make a claim against the Named Insured — without cross-liability language, the policy could deny the claim since both parties are insureds.
Why It Matters for COI Compliance
When you are added as an Additional Insured on a vendor's policy, cross-liability ensures you can still make a claim against the vendor under that same policy. Without it, the insurer could argue that one insured cannot sue another insured, effectively negating your Additional Insured protection.
Verification
Cross-liability is typically included in standard CGL policies through the Separation of Insureds condition. Verify that the vendor's policy has not been modified to remove this provision, especially when manuscript or custom policy forms are used.
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